Sustainable footwear company Allbirds announced Wednesday that it will pivot its business to AI compute infrastructure, securing $50 million in convertible financing to fund the dramatic transformation. The company executed a definitive agreement with an institutional investor for the financing facility as it abandons its shoe business for GPU-as-a-Service operations.

Allbirds said it entered into a definitive agreement to sell the Allbirds brand and footwear assets to American Exchange Group, a brand management company focused on the accessory space, for $39 million. The company anticipates changing its name to NewBird AI, with a vision to become a GPU-as-a-Service and AI-native cloud solutions provider.

Investors love the pivot for the distressed brand, with shares of BIRD spiking more than 400% after Wednesday’s open to a daily peak of $12.72. As of this writing, BIRD is changing hands for $10.97 per share, up about 340% after touching its highest price since last July.

According to company statements, NewBird AI expects to use initial capital from the financing facility to acquire high-performance GPU assets, which will be deployed to serve customers requiring dedicated access to AI compute capacity.



“The Company will initially seek to acquire high-performance, low-latency AI compute hardware and provide access under long-term lease arrangements, meeting customer demand that spot markets and hyperscalers are unable to reliably service,” it said in a statement.

The convertible financing facility is expected to close during the second quarter of 2026, according to the company’s filing. Allbirds has scheduled a special meeting of stockholders for May 18, for stockholders of record as of April 13. The company also anticipates issuing a special dividend during the third quarter of 2026 to stockholders of record as of May 20.

The pivot comes as Allbirds faces significant financial challenges, with the company’s market cap recently sitting around $21 million despite its previous unicorn status. The stock had tumbled to a Tuesday close of $2.49 per share, down more than 60% over the past six months.

The company has burned through cash, posting negative free cash flow of $58.23 million over the last 12 months. Chardan, the investment bank serving as placement agent on the convertible financing facility, structured the deal to provide immediate liquidity while giving investors potential upside through conversion features.

Demand for AI computing power has prompted a number of Bitcoin mining firms to pivot their immense infrastructure to high-performing computing needs, though Allbirds had no such computing foundation to start from.

The shift recalls the 2017 pivot of a drinks company to become Long Blockchain Corp.—a move that similarly prompted a massive initial stock surge. However, the firm’s shares were ultimately delisted from the Nasdaq and pulled from the market entirely by the SEC. Three people linked to the company were later hit with insider trading charges from the SEC tied to the pivot.

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